Wednesday, April 08, 2009

Will Monetization Models for Social Media Ever Come?

Dave Naylor is never shy to share his opinion on matters and this interview with WebProNews is no exception. As evidenced by several of our videos from SES New York, social media was a hot topic. One area in particular that raised a lot of discussion was monetization of social sites.

According to comScore, YouTube is the second largest search engine next to Google. It however, does not have a solid monetization model. Dave says YouTube users don’t care what’s going on around them. They simply want to watch a video. YouTube users turn advertisements away much like they do on television, by either flipping to another channel or leaving the room until their program comes back on.

Twitter is a whole different story altogether. Look at all the applications it provides such as TweetBerry, TweetDeck, and our very own Twellow. Dave then raises the following question: what if Twitter would start charging for their usage? How would that change your business strategies on Twitter?

Twitter recently announced that Pro accounts are coming this year but has yet to disclose what they consist of.

Moving right along to Facebook. As discussed in our interview with Tim Kendall, contextual advertising on Facebook is based on the freely submitted data Facebook users provide. On the contrary, Google and the other search engines base their advertising on the searcher’s past history.

Facebook’s model is much more accurate than the search engine’s technique. Most users conduct many searches at work, which does not reflect their actual behavior. Facebook uses the information users readily give to them as part of their preferences.

On a final note, Dave points out that Google needs to incorporate a “business account” for Google accounts since sometimes many people are logged into one person’s account. He suggests giving the account holder the ability to choose who can have access to what.






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